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GBP/USD is expected to see a clear break above 1.3174/84 for strength back to the “neckline” to the August top at 1.3247 and eventually long-term resistance at 1.3482/1.3514, according to the Credit Suisse analyst team.

Key quotes

“GBP/USD has extended its defence of key price support at 1.2863/46 for the completion of a bullish ‘outside week’ and with the market back above its 13 and 55-day averages we look for a clear break above resistance at 1.3174/84 – the October high and 61.8% retracement of the September/October fall – for a challenge on the ‘neckline’ to the August top, currently at 1.3247. 

“Whilst the August top at 1.3247 should again be respected, we remain of the view price action over the past two months stays seen as the potential ‘right-hand shoulder’ to a major basing process and look for a sustained break in due course with resistance seen at 1.3310/19 next, ahead of 1.3403/09 and eventually back at long -term price and ‘neckline’ resistance at 1.3482/1.3514, above which is needed to see a major base secured.” 

“Support moves to 1.3138 initially, with 1.3093 now holding to keep the immediate bias higher. Below can see a deeper setback to support from the 13-day average at 1.3050, but with fresh buyers expected here.”